First, I applaud your desire to take your company to the next level.
Next, Let's say hypothetically that I was an entrepreneur with enough money or know-how to come up with significant funds for you - Could you tell me what edge you have in your market and uncertainties that prevail there as well with different stakeholders?
Also, On what earnings are you proposing what ROI within what time-frame?
A little complex, but I am attempting to get to the bottom of the line of what most investors want to know. Every business owner out there usually wants more money for inventory or etc...Why should it be given to you? what are the risks? and realistically speaking what return can such investors expect? And how fast can you deliver?
If you can come up with confident answers to these questions, given within a brief amount of time, bundled as well-thought responses within a remarkable story, you may be able to have some angel investors who are not your daily traders. However, such people are known for their lack of patience and lack of desire to put off with those who can not be perceived as commanding in their fields.
Clue: They need to really believe in you and make adequate returns within reasonable amount of time. They can't be burden with too many details. They will lose all the interest. But all the answers to any possibility needs to be available.
Thank you for your input and questions. The questions you have asked me are all questions I have asked myself and addressed in a very detailed business plan. However, in light of your input of the questions being answered in a brief amount of time, here's what I have come up with.
Here's my story:
I started this business in 2009 because I saw an opportunity. Since 2000, the industry had been increasing by leaps and bounds. Homeowners were spending more money than ever before, and there were more projects than time allowed. Builders' and remodelers' greed got the better of them and poor workmanship and even poorer relationships were the norm. By the drop in the market in 2008, trust and respect had been all but lost in the home building and remodeling industry's contractors. By the time I started my business in April of 2009, the dust was settling, and it was clear that the reputation those before me left behind was not irreparable but close to it.
I saw a need: clients have to be able to trust their contractor. No other industry in the world is as invasive upon a person's lifestyle than that of home remodeling. Having strangers in your home for weeks or months on end is unnerving, stressful and can be trying on relationships. Not to mention their home being in disarray for that time frame as well. And on the "worlds most abrasive" list, names behind that of a remodeling contractor is short.
I started this business with a purpose; to restore the trust and respect of my industry. Clients need to feel like they are the priority, not the dollar they are spending. I have carefully and consciously addressed this over the last three years and have had a successful relationship with each and every one of my clients. I dare say that I am more trusted and respected than some of my competition; those who survived the recession and are still operating on greed.
The industry I am in appears on the surface to be very competitive and saturated. After you weed out the smaller "Chuck-in-a-truck" type contractors you are left with really only a handful of good-quality companies that can complete complex, high-end projects. We have two competitive edges: our relationships and detail. We first develop a high level of trust and respect for and from our clients during our first sales meeting. We don't inundate them with needless jargon and sales pitches, rather we listen to their wants, needs and get to know them personally. This approach allows us to be viewed as a confidante and ally in their project, not just another salesman selling a product.
Our detail is where we hit it home. Right off the bat they see how detailed we are. Our proposals are more thorough than any other bid they will get from any other company. We think of every detail and leave nothing up to interpretation. What they see is what they get from us, setting us far and above the competition Additionally, our detailed proposals show the holes and possible "bait and switch" approach our competitors have in their bids, quickly acknowledging our proposal as the most legitimate and complete.
The remodeling industry is back on the rise. Homeowners are spending money again, and more of it. My business is on the cusp of engaging some of the biggest opportunities to come forth in next two years. We have completed one of the more elaborate projects last year in comparison to our competition, thus proving to the clients that we have the capacity, the interest and the manpower to get it complete. To address the influx of business we can get with our proposed aggressive advertising campaign, we need to fill administrative positions to streamline our processes and additional equipment to perform our field work more efficiently, with an end result of making more money.
Our market is seeing significant growth, but there is still risk. If we see another stock market crash reminiscent of that in 2008, the industry will go through another struggle with projects at a premium and the increase of the "Chuck-in-a-truck" contractor again. My company can survive another situation like that, however the length of return will be stretched; more than likely doubled. But all indicators point to a steady climb over the course of the next five years, resulting in a good ROI for our investor(s). Our investor(s) would see a healthy return in five years or less with an ROI of 25%.
The opportunity is there. My company addresses the voids others have left behind. The remodeling industry is a profitable one, and the more I set my business apart from the rest of the pack, the more desirable we become to our clients. With a little help to expand our business, I can confidently say that my business will be at the top of our market as a premier remodeling contractor in the industry; the gold standard unto which our competition will compare themselves.
You gave a detailed, thoughtful explanation.
I agree with Jonathan that you need to be able to "compress" your ideas into a limited time frame.
What I would like to add is that you need to be able to bring the essence of your vision within the first few sentences, and only then, go to details, tell your story etc. Otherwise, you are going to lose the attention of your potential investor. People who are constantly exposed to many offers will not pay attention to yours unless they quickly identify what's in it for them. It doesn't matter if you present your offer speaking or in writing. It is important that you have a strong opening that clearly states the value for them and what is unique about your vision. The same goes to your finishing lines that should emphasize the same things and leave the investor with a strong and clear impression.
Other than that, I would like to relate to the part where you wrote that "banks lending money is a joke".
While I agree with you, I would like to mention that there other lenders beside banks, i.e. private lenders. It's not always easy to find a reliable one, and, yes, their rates are higher, but it is nevertheless an option you could check. Our company, works with a reliable private lender so I know it's possible to find one.
The last thing I would like to suggest is to spread your search a little.
There are a few ways to do this and I'll mention one as an example:
There is a website - BusinessLeads.com that connect between business owners to potential customers. What you do, is offering a "bounty" for people who can bring you leads that answer the criteria you set. So you state exactly what your idea is about and what type of investor you search and you offer a painment which is above average for each lead. This way you get "bounty hunters" to search for an investor that answers your criteria. I bring this site as an example for broadening your search.
My company is a 4-year old residential remodeling and construction company, we we have been operating at the same level for the last few years, and I am interested in taking it to the next level. I am seeking out an investor (since banks lending money is a joke) and Need some help in doing so. I seem to struggle locating the type of investors I need. I keep coming up with angel investors looking to invest a small amount of money with a 10-fold return for their investment - but they're typical investment is for new product ideas that require R&D or special marketing and production. Any help that would point me in the right direction is appreciated.